Renewable Electricity Generation in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: July 2024
SIC SP0.129Revenue
£9.1bn
Past 5-Year Growth
Profit
£X.Xbn
Employees
11,275
Businesses
127
Wages
£XXX.Xm
Renewable Electricity Generation in the UK industry analysis
Increased awareness about the effects of climate change has driven an aggressive decarbonising strategy, spearheaded by renewables. Government targets and incentives are encouraging major investment in renewable assets among UK energy giants, while technology developments have boosted potential generating capacity, particularly in offshore wind, which has grown the fastest of all renewable energy sources. Government data shows that the share of electricity generated by major power producers from renewables surged from 31.2% in 2019 to 42.1% in 2023.
Trends and Insights
- Decarbonisation targets spark industry growth. The government wants carbon removed from the UK’s power mix by 2035, driving up renewable generation.
- Renewed government support boosts solar and onshore wind's contribution to the energy mix. After the government lifted a block on onshore wind and solar investment in Contracts for Difference (CfD) auctions, investment in the technologies has picked up.
- The East of England boasts a large offshore capacity. This is the result of shallow waters and high wind speeds in the North Sea and makes it the second-most important region for renewables.
- Price controls limit competitive pressure. Most renewable generators are held hostage by price regulation, restricting the amount they can charge for renewables. This makes different generators all much of a muchness.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 3.4 % over the past five years, to reach an estimated £9.1bn in 2024.
Trends and Insights
Government decarbonisation targets fuel growth in capacity
- Fuelled by government funding and incentives for private investment, the UK's renewable generating capacity has surged in the last decade, up from just under 20GW in 2013 to more than 56GW in 2023.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Ambitious targets maintain support for renewables
- The government's target to decarbonise the power sector by 2035 should ensure continued policy support for renewables.
Biggest companies in the Renewable Electricity Generation in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
SSE plc | 1,572.3 | |
Orsted Power (UK) Ltd | 1,420.1 | |
Scottish Power UK plc | 1,331.8 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Renewable Electricity Generation in the UK
Products & Services
Industry revenue is measured across several distinct product and services lines, including Offshore wind power, Onshore wind power and Solar photovoltaics. Offshore wind power is the largest segment of the Renewable Electricity Generation in the UK.
Trends and Insights
The UK leads the way in offshore wind power
- Offshore wind farms are located in bodies of water and assembled on fixed foundations.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Electricity Production in the UK
Complementors
- Electricity Transmission in the UK
- Electricity Distribution in the UK
- Electricity Supply in the UK
International industries
- Hydroelectric Power in the US
- Wind Power in the US
- Solar Power in the US
- Renewable Power in Canada
- Hydro-Electricity Generation in Australia
Table of Contents
About this industry
Industry definition
This industry comprises establishments that generate electricity from renewable natural resources such as sunlight, wind, tides and biomass. It only includes the generation of electricity from sources that are inexhaustible and can be replenished indefinitely, unlike fossil fuels such as coal. This industry does not include transmission or distribution activities.
What's included in this industry?
Offshore wind powerOnshore wind powerHydropowerSolar photovoltaicsBioenergyCompanies
SSE plcOrsted Power (UK) LtdScottish Power UK plcPurchase this report to view all 5 major companies in this industry.
Related Terms
PHOTOVOLTAICSINSTALLED CAPACITYCONTRACTS FOR DIFFERENCEGWIndustry Code
SIC 35.11 - Renewable Electricity Generation in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Decarbonisation targets spark industry growth. The government wants carbon removed from the UK’s power mix by 2035, driving up renewable generation.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Renewed government support boosts solar and onshore wind's contribution to the energy mix. After the government lifted a block on onshore wind and solar investment in Contrac...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The East of England boasts a large offshore capacity. This is the result of shallow waters and high wind speeds in the North Sea and makes it the second-most important region...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Price controls limit competitive pressure. Most renewable generators are held hostage by price regulation, restricting the amount they can charge for renewables. This makes d...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Orsted has overtaken the industry’s other major players. Regular capacity expansion – with more planned in the future – has put it at the top of the market.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of SSE plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Orsted Power (UK) Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Scottish Power UK plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for SSE plc, and factors influencing its performance in the industry
- Description and key data for Orsted Power (UK) Ltd, and factors influencing its performance in the industry
- Description and key data for Scottish Power UK plc, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Contracts for Difference auctions are key. These are the government's main mechanism for attracting investment in renewables, with a fixed price guaranteed for each unit of e...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profits climb amid rising energy prices. As prices shoot up, generators that aren't subject to regulated prices rake in more revenue to spread their fixed costs across. Howev...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Renewable Electricity Generation in the UK industry in United Kingdom in 2024?
The market size of the Renewable Electricity Generation in the UK industry in United Kingdom is £9.1bn in 2024.
How many businesses are there in the Renewable Electricity Generation in the UK industry in 2024?
There are 127 businesses in the Renewable Electricity Generation in the UK industry in United Kingdom, which has grown at a CAGR of 22.5 % between 2019 and 2024.
Has the Renewable Electricity Generation in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Renewable Electricity Generation in the UK industry in United Kingdom has been growing at a CAGR of 3.4 % between 2019 and 2024.
What is the forecast growth of the Renewable Electricity Generation in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Renewable Electricity Generation in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Renewable Electricity Generation in the UK market in United Kingdom?
The biggest companies operating in the Renewable Electricity Generation market in United Kingdom are SSE plc, Orsted Power (UK) Ltd and Scottish Power UK plc
What does the Renewable Electricity Generation in the UK in United Kingdom include?
Offshore wind power and Onshore wind power are part of the Renewable Electricity Generation in the UK industry.
Which companies have the highest market share in the Renewable Electricity Generation in the UK in United Kingdom?
The company holding the most market share in United Kingdom is SSE plc.
How competitive is the Renewable Electricity Generation in the UK industry in United Kingdom?
The level of competition is moderate and decreasing in the Renewable Electricity Generation in the UK industry in United Kingdom.
